Canoro Completes Initial Testing at Amguri 10B

Canoro Resources successfully has completed the initial testing operations on the Amguri 10B well. The well flowed at a clean-up test rate of 375 bbl/d of 50 degree API condensate and 1.1 mmcf/d of natural gas through a 12/64 inch choke and tubing head pressure of 2,200 psi with less than 5% BS&W.

The well encountered a 32-meter thick gas-condensate reservoir at a depth of 2,882 meters to 2,914 meters in the Barail formation. This interval is also approximately 26 meters higher and 12 meters thicker than the same sands in the producing Amguri 6 well, approximately 500 meters to the east. This 32-meter interval is being tested in two sections, with the test results above being from the lower section from 2,900 - 2,913 m. KB (13 meters). Canoro is now moving to the upper section 2,882 - 2,896 m. KB (14 meters) to perform a similar test. This well has already been cased and all testing is done through casing.

Once final results are obtained from Amguri 10B, it is planned that the rig will be moved approximately 10 meters to directionally drill the next well, Amguri 11.

With existing well site facilities located at Amguri 6, approximately 200 meters from the surface location of Amguri 10B, new production from Amguri 10B is expected to be on stream during the fourth quarter, generating increased cash flow and production to Canoro. The existing purchaser of the natural gas has recently indicated that they will be able to handle the additional supply from Amguri 10B and a potentially successful Amguri 11.

Canoro is a Canadian-based international oil and gas company operating in the Assam/Arakan basin of northeast India. Canoro is the operator of Amguri field with a 60% working interest. Canoro is the operator with a 65% working interest in the AA-ON/7 exploration block. Canoro also has a 15% non-operated working interest in the AA-ONN 2003/2 exploration block.